The US Department of Justice has arrested and charged two Chinese nationals, Chuan Geng and Shiwei Yang, with exporting millions of dollars’ worth of advanced artificial intelligence chips to China without obtaining necessary licenses. The defendants, who owned a California-based company called ALX Solutions, made illicit shipments from October 2022 through July 2025.
The US chipmaker Nvidia’s most advanced chips, including the H100 general processing units, were among the sensitive technology exported by Geng and Yang. These chips are used in artificial intelligence applications and were placed under export controls by the Department of Commerce in 2022 to restrict China’s access to the most advanced semiconductor technology.
According to a criminal complaint, law enforcement searched ALX Solutions’ office and seized phones belonging to the defendants, revealing incriminating communications about evading US export laws. The investigation also showed that the company was not paid by entities they purportedly exported goods to, but received payments from companies in Hong Kong and China.
Geng and Yang face felony charges under the Export Control Reform Act, which carry a maximum penalty of 20 years in federal prison. Their case highlights the growing concern about the smuggling of advanced microchips, with at least $1 billion worth of Nvidia’s chips entering China despite US export controls.
The investigation is ongoing, with the US Department of Commerce’s Bureau of Industry and Security and the FBI continuing to look into the matter. Malaysia has also announced plans to require trade permits for advanced AI chips sourced from the US in response to pressure from the US.
Source: https://www.cnbc.com/2025/08/06/two-chinese-nationals-charged-for-illegally-shipping-nvidia-ai-chips-to-china.html